The Two Phases of Business (And How To Know Which One You're In)

From the Desk of James Wedmore:

If you’ve been hanging out with me on Instagram lately (@jameswedmore), you’ve probably seen my latest Airbnb adventure unfolding over on Stories.

Back In January, I purchased my fifth Short-Term Rental Property, and now…I’m setting it up. And let me tell you…

From repairs to furnishing…it’s a LOT of work (and a lot of money!)

In fact, when I was setting up my first property back in 2020, a few of my friends teased me. 

“Did you give up the old internet business to become a handyman now?”  

Fair enough.

(Here's me in the Airbnb!) 

I was covered in paint holding a hammer in one hand and a drill in the other.

But they didn’t see what I saw. (And what I’m about to share is simple yet powerful for any business owner.)

I was in Phase 01: BUILDING the Machine.

Today? I spend less than 30 minutes PER WEEK on my Short-Term Rental Business and it generates between $500K-$600K in bookings per year.

Just 30 minutes a week. Sometimes less.

Because today, I’m in Phase 02: RUNNING the Machine.

And THIS is the phase you were dreaming of when you first said, “I want to start a business.”

This is the phase where all the money, freedom, time, impact, and lifestyle actually kick in.

But here’s the catch…

👉 If you don’t build Phase 01 the right way, how can you ever get to Phase 02?!

To keep it simple:

Your business has two phases:

1. The phase where you build it.

2. The phase where you run it.

Phase 01 is tough.

It demands your time, energy, effort, and cash… As it should.

This is where most people give up. They can’t hack it. This is the Entrepreneurial Initiation. Our rite of passage if you will. When you survive this... there's an invisible Badge of Honor that only the others who have 'been there, done that' can see. 

But unfortunately, MOST get stuck in this first phase.

And if you're here in Phase 01 now, you've probably asked yourself, 

“Is it always gonna be like this?”

The answer? No.

(Well…not if you build Phase 01 right.)

Phase 01 is all about BUILDING your business so you can eventually RUN it with far less time and effort.

So it can continue to make more while you work less.

In this phase, you should be absolutely willing to do ANYTHING once.

Create anything once. Build anything once.

So that you can automate, delegate, or systemize it in Phase 02.

This is so hard for people to comprehend.

Well, sorry. Let me edit myself.

I actually think anyone reading this (including yourself) can find this very simple to comprehend…

…but it’s hard to actually IMPLEMENT this!

Why?

Because the old “employee mindset” programs are playing out in the background.

“You have to work hard to be good enough, deserving, lovable, etc.”

So you just keep doing. Doing. Doing.

But here’s the real question:

Did you build a business?

A system?

A process?

…or did you just build a JOB for yourself? (Or more accurately, like 10 jobs?)

You’ll know the answer to this based on one simple test:

What happens to your business when YOU stop working?

If it stops generating leads and sales…

Well, there’s your answer.

So let me help you with this a bit.

HUGE Quick Favor:

🤖 Doing Research on Current AI Usage

I have a quick favor to ask. I'm doing research to discover how much business owners are using AI in their business right now.

If you take the anonymous 2-question survey, I'll make sure to share the results ASAP: CLICK HERE: How much are you using AI in your business right now?

What You SHOULD Be Doing In Phase 01:

💸 This is the Work That Pays You for Years

If you’re in Phase 01, your job is to build a machine that will eventually run without you.

Here’s a simple list of the right things to focus on, so you can graduate to Phase 02 FASTER.

✅ 1. Have a Complete, Deliverable Offer That's SCALABLE

This means anyone can buy it and consume it at any time—without needing you.

No live calls. No “you’re the product.”

It’s packaged. It’s ready. It’s plug-and-play.

✅ 2. Build the Sales Machine That Sells It

I don’t care if it’s a webinar, a challenge, a whatever… IRRELEVANT.

You need one high-converting Sales System.

Build it. Test it. Tweak it. Optimize it.

(Again, building this will take time, but running it won’t…that’s Phase 02).

✅ 3. Create a Step-By-Step Content Process

You need a simple, repeatable system for publishing content SOMEWHERE on the internet. The key word in that sentence being "repeatable."  

In fact, the more repeatable, the less effort it will inevitably take. 

So the name of the game is consistent content.

Have a process for how it gets created, edited, scheduled, published, and shared. Copy. Paste. Rinse. Repeat. 

And bonus points if you’re not the one doing it all.

✅ 4. Document Everything Below Your Pay Grade

If you’re answering customer support emails, fiddling with tech (like page redirects, tags, etc.)... stop.

Document it. Process-cize it. Especially the most repeatable tasks. This is why... Every PROCESS is YEARS of your life BACK.  

✅ 5. Get It Off Your Plate

In the BBD Community, we follow a Process called: DAD it!

Delegate. Automate. or... (and my favorite) DELETE IT!

Delegate. Find the people to run the process. Even if it's a part time Virtual Assistant overseas... it's ESSENTIAL! 

Automate. With the advances of AI and its integration into so many software platforms, look for ways to automate your workflows or at least "delegate" some of the work to AI. 

In fact, check out Rytr. It is an AI Email assistant that manages your email inbox for you... like what?! (Note: I just stumbled upon it this morning, so it's on my list to test and review it shortly!)

Bottom line: If you don't start doing this... burn out is inevitable. So just remember: Working Hard is LAZY. It's lazy to avoid problem-solving and process-building for efficiency. It's safe and convenient to operate from "oh I'll just do it myself." 

It's not sustainable, and it's actually your biggest bottleneck to growth. 

What You SHOULD NOT Be Doing in Phase 01:

🌀 You're Not Scaling. You're Spinning.

Here’s where most people waste time, energy, and money…and stay stuck in Phase 01 forever.

❌ Creating Multiple Products at the Same Time

One offer. That’s all you need to hit multiple 6-figures.

More offers = more complex = more work = more time feeling stuck.

❌ Trying to Be Everywhere All at Once

You don’t need to be on TikTok, Instagram, YouTube, Pinterest, Threads, AND LinkedIn all at the same time.

Pick a platform. Go deep. Get traction. THEN expand.

(Spreading yourself thin isn’t a strategy. It’s a plan for burnout.)

❌ Launching or Selling in a Way That's NOT Replicable

There’s a lot of struggling online experts doing slightly *shady* and totally UN-scalable things just to make a quick buck.

(Note: Struggling Entrepreneurs try to make money. Successful Digital CEOs make machines that make money for them. Know the difference.)

I’m talking about things like spamming Facebook groups.

Relying on random cold DM strategies. 

Commenting on other Experts' posts to poach leads.

This shit is NOT a business.

It’s bottom-feeding. And it ain't sustainable either.

❌ Hiring an Expensive Freelancer to "Build It For You"

If you’re in Phase 01, you don’t fully know your message, your offer, or your customer yet.

Neither does this freelancer. I mean, how can they?

It’s the blind leading the blind.

Learn marketing.

Learn messaging.

It’s the only damn way you’ll be successful. Period.

Ok, there are more... but you get the idea, right?

What You SHOULD Be Doing in Phase 02:

🚀 You Built It. Now Run It Like a Digital CEO.

Once you’ve built the machine (a Process for Leads, a Process for Sales, and a Process for Fulfillment), Phase 02 is about letting it run—and scaling what works.

Here’s where your focus should shift:

✅ 1. Put Your Offer in Front of More People

Stop creating more stuff.

You already have the offer, the sales system, and the process. Now? Turn up the volume.

Run it again. And again. And again.

Consistency beats reinvention every time.

✅ 2. Know Your Numbers

As you’ve heard me say:

You can’t grow what you can’t measure.

Track your sales metrics, conversion rates, ad performance, email open rates—everything tied to your machine.

Don’t just get more people IN... optimize what comes OUT.

✅ 3. Get as Much Off Your Plate as Humanly Possible

YOU ARE THE BOTTLENECK.

(Yes, even you.)

Delegate, automate, and release control.

“Control” is an illusion. Stop believing these lies that no one can do it as well as you can.

That’s EGO.

Spend more of your time on helping the people who are helping you. Coach them up. Improve their processes and workflows. Help them get more off THEIR plates!

✅ 4. Simplify. Remove Constraints.

Phase 02 is where you start getting better at doing less.

Focus on what drives results, and ditch the rest.

And again, get as much off your plate as possible.  

...ok, I’ll leave it there for now, hope this helps!

The Rise of the Digital CEO:

🌐 Why 75K Entrepreneurs Registered for Our Virtual-Event Last Year

More people are becoming entrepreneurs and starting businesses than in any time in history. Isn't that exciting?! 

Yet frankly, most are ill-equipped. They don't have the first clue how to run one (I know I didn't).

Yet, I believe when you learn how to "clean up" your business and run it RIGHT, not only will it grow, but you'll get to work less... and enjoy it more. 

That's what our 3-Day Virtual Live Event Experience: The Rise of the Digital CEO is all about. It's absolutely free, and it kicks off May 29th! 

Digital CEO Resource:

📝 Get Stuff Out of Your Head and Off Your Plate

If you're serious about moving from doing everything to documenting and delegating, you’re going to love this.

My team and I have been using a tool called ScribeHow for the past year—and it’s been a total game-changer for us.

ScribeHow is a process documentation tool that helps you quickly capture and share how something is done—so you never have to repeat yourself again.

Here’s why I recommend it:

🛠️ 1. Start With a Blank Process Doc

You can write up any repeatable process, from responding to support emails to how your podcast gets edited, and easily share it with your team.

🎥 2. Capture Your Screen & Auto-Document It

This is the cool part: just hit “record” and go through the steps of your task.
ScribeHow watches what you do and automatically turns it into a step-by-step guide, with screenshots and instructions.

🤖 3. Let AI Build It FOR You

Yep, it has an AI feature that can actually generate a process for you in seconds.

It’s like having your own operations assistant.

And all of it stays organized in folders, ready to share with your VA or new hire, so they know exactly what to do (without needing you to explain it 10 times).

Bottom line?

If you’re in Phase 01 and you want to build a business that runs without you...

Or you’re in Phase 02 and you want to scale without burning out...

ScribeHow helps you build the systems to make that happen.

Highly recommend.

The Mind Your Business Podcast:

🤑 Money! Money! Money!

Best-Selling Author Kate Northrup joins me on the show this week to talk everything MONEY.

How to heal your relationship with it and attract more!

It's a must listen.

🎧 LISTEN To The Episode Here

🔥 This Week In A Meme

Thanks for reading and see you again next Monday!

Cheers,

James

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